Due to the impact of COVID-19, the decline in corporate value, and difficulties in obtaining funds, this year’s merger and acquisition activities in the cannabis industry are much less than before.
Gone are the days when large listed companies in the cannabis industry competed with each other to expand the market. But this does not mean that investors and well-capitalized entrepreneurs cannot reach successful cooperation.
Morgan Paxhia, managing director of San Francisco-based Poseidon Asset Management, believes that “it’s an incredible time to be an investor.”
Paxhia also stated that current changes in the cannabis industry “means we’re getting very attractive, rational valuations.”
“We’re able to build another portfolio that can generate some really strong return profiles.”
Some cannabis industry stakeholders provided advice on how to seek investment bargain buyers.
They provide the following important notes:
- The coronavirus effect.
- The need to deviate from established game plans.
- The importance of looking at struggling businesses.
- The need to fully weigh options.
This article is issued by Mjbiz Daily.